Tech Briefs: January 27, 2003

Tech Services Outsourcing On Upswing: Technology services outsourcing is making a comeback, according to Evans Data Corp., a Santa Cruz, Calif.-based technology industry intelligence gatherer.

American businesses’ outsourcing of software development work increased by 175 percent from mid-2001 to the end of 2002, according to Evans’ latest Enterprise Management Issues Survey. More than 70 percent of companies now outsource some software development, up from a low of 40 percent reported in a May 2001 study by the company.

Fortune 500 companies are leading the return to outsourcing, with about 80 percent of companies with more than 10,000 employees outsourcing some of their development compared to about 66 percent by companies employing between 1,000 and 10,000 people, the survey said.

Why businesses turn to outsourcing has also changed. "Most of the companies surveyed are turning to outsourcing as an alternative to hiring full-time IT employees, whereas, in the past, most companies turned to outsourcing for additional expertise," said Joe McKendrick, an analyst with Evans Data Corp.

Softline Upgrades Businessvision: Softline Software has released a new version of its BusinessVision accounting software that includes segmented general ledger account numbering, whose benefits include greater ease of use by nonprofits and companies with multiple divisions.

Other key enhancements in Version 6.0 include an Accounts Wizard that allows users to create new GL accounts and segments by copying the structure of existing accounts; an All Warehouses inventory browser that allows users to both browse items held in all warehouses and determine the exact warehouse in which inventory is held; and enhanced F9 reporting.

BusinessVision is offered in four editions, with prices ranging from $995 to $9,995 depending on the license, module mix and other variables. It has some 40,000 customers and is sold through a channel that includes 1,300 resellers in North America. For more information, call (877) 789-4545.

Intacct In Alliance With Outsource Firm: Intacct, the Internet-based accounting software and services platform, has formed a marketing alliance with Outsource Partners International, the accounting services outsourcing firm that acquired the national outsourcing practice of KPMG in May 2002.

"The two companies are working together to bring online accounting software and services to multi-location businesses, including franchises, retail chains and professional services organizations," Intacct said.

"The professionals at OPI have tremendous experience in helping businesses to cost-effectively improve their financial processes," said Intacct chief executive David C. Thomas. He said that Intaact’s multi-location capabilities "are a huge benefit to OPI clients that have locations around the country or the world."

Hardware Appliances Lead Internet Security Sales: Internet security technology sales are being driven by hardware appliances that include software, rather than the software alone, according to technology industry observers International Data Corp.

IDC’s compilation of data for all of 2001 finds that the security appliance market "grew robustly despite the [downward] trend of many other markets." Significant gains included a 62 percent increase of sales of network intrusion detection devices; 34 percent growth, to more than $1 billion, in sales of firewall/virtual private network security appliances; and more than 200 percent growth in the consumer market, led by consumer-oriented routers.

"Software and hardware security solutions must continue to be part of a coherent enterprise security program," Framingham, Mass.-based IDC said in its report, Worldwide Security Appliance Forecast and Analysis, 2002-2006. "If software vendors’ applications are unsuitable for an appliance they should then partner with an application vendor that can include the software as a complete solution."

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